THE Middle East region continues to be at the forefront of investment for many industries, and the United Arab Emirates especially are known for their explosive growth, innovative architecture and rapid globalisation.
As one of the world’s 10 largest oil producers and a major trade hub for the region, the country is especially attractive for companies in the oil and gas and engineering industries who are used to working in the UKCS and are keen to adapt to new opportunities during this downturn.
In the Chamber’s latest international trade seminar our three knowledgeable speakers gave their reasons why the UAE should be your next market: Jeff Lockhart, director at St Andrews Management Centre Ltd; Chris Lynch, international director of Santander’s Corporate and Commercial banking division and Jim Shiach, managing director at Centrifuges Un-Limited.
All three have experienced new exporters’ concerns first- or second-hand. It may reassure you to know you are not alone if you are wary of entering a country with cultural differences, a lack of connections and unknown business regulations.
In addition to holding a long list of roles and accreditations, Jeff is the training instructor for one of the Chamber’s most popular international training courses, “Doing business in the Middle East”.
Jeff highlighted that the UAE is one of the most accessible Gulf countries, 31st in ease of doing business according to the World Bank rankings. It is easier to register property there than in the UK, and it presents a lower risk profile than others in the region who experienced the Arab Spring.
MENA standards still broadly apply in terms of modest dress and the difficulty of doing business as a woman. However, the Emirates are more liberal than their neighbours, particularly Dubai and Abu Dhabi. Jeff’s message was that patience and adaptability are necessary to succeed in a business environment where discussions are unhurried and trust is key.
Chris pointed out that Santander’s research into the greatest challenges for exporters consistently shows that the major constraint is a fear of entering the unknown.
Santander’s Trade Portal, unique in the banking sector, provides a one-stop-shop for companies who want to learn about new markets. It allows Santander’s commercial clients to access information for selected countries and sectors on potential partners, contacts, events, workshops and even blacklisted companies and vessels.
A 30-day free trial period is available for non-customers.
Jim Shiach spoke candidly about the long journey to establishing his company, Centrifuges Un-Limited, in Dubai. Even after travelling to the UAE several times, doing his due diligence and receiving support from Scottish enterprise as an account managed company, there was a steep learning curve to adapt to local regulations and gain partners’ trust.
Would he do it all again? Absolutely, he says.
His advice was to examine the available models of ownership to choose your entry strategy and build a presence within the country. Changes in regulation can be sudden and may translate into stealth taxes, so keep your ear to the ground and obtain local expertise.
The Chamber’s next seminar on Entering Iraq will have high-profile speakers like the UK Government’s Trade Envoy Baroness Nicholson. Book on for May 13, 2016.